The present invention relates to electronic transaction and identification systems, and portable electronic transaction devices, such as cards, keys, modules, etc. and appertaining stationary equipment, such as terminals aand coding and transaction devices.
There are two main general economic systems:
Government controlled planning and checking (socialistic system) and PA1 private enterprise with the free market of supply and demand ("capitalism"). PA1 a Central Planning and Controlling unit (CPC), a unit which is operated by governmental or other official authorities; PA1 a number of Business Stations (BST), which are in the possession of participating business in the system; PA1 Incentive Modules (IncMod), which are integral parts of the BSTs; PA1 Interrogating, Concentrating and Updating Stations (ICUST), sub-stations of the CPC unit, which are preferably on-line with the CPC unit; an PA1 Transaction M-cards for payment transfers between off-line Business Stations (BSTs). PA1 a motorcycle and perambulator manufacturer shall b designated by the capital letter--F PA1 its product "motorcycle" shall be designated by the two numerals--14 PA1 the product "perambulator" shall be designated by the numerals--27 PA1 Thus, a transaction of this factory, dealing with motorcycles, will be designated by the index--F 14 PA1 and a transaction dealing with perambuaators will be designated by the index--F 27 PA1 --F 14d (=domestic sale of motorcycles) PA1 --F 14e (=export of motorcycles) PA1 --F 27d (=domestic sale of perambulators) PA1 --F 27e (=export of perambulators) PA1 A wholesale organization for technical equipment shall be designated by--N PA1 its purchase for resale to domestic customers shall be designated by--d PA1 and its purchase for export against foreign currency shall be designated by--e PA1 Thus, a transaction where this wholesale organization purchases a domestic product for domestic resale will be designated by--N d PA1 while its purchase of a domestic product for subsequent export will be designated by--N e PA1 production of motorcycles is desirable, because the working people of the specific region shall be made more mobile for commuting between home and working place; so the incentive coefficient (ICO) is set to 1.1; PA1 as the export of motorcycles is even more desirable to improve the foreign trade balance and to earn foreign currency, the ICO is set to 1.2; PA1 the production of perambulators is not desirable for domestic sale, as the government applies a restrictive birth control; the ICO is set to 0.8; PA1 when perambulators, however, can be exported, the production is considered to be favourable; the ICO is set to 1.2.
Both offer advantages and suffer drawbacks and inconveniences.
Attempts have been made to combine both. Such combinations remain experimental.
It is desirable to make any effort to optimize an economical system.
Every economic system is operated by human beings and is (or should be) designed for their benefit.
It is natural for human beings striving after benefits (or in the words of capitalism: after "profit"). By using this impetus, when the same human being is an operating member of the system, one can achieve higher efficiency than by applying force to him or her.
In no (economic) system neither in a highly industrialized one nor--especially--in a country with a developing industry--can rules be "catch-as-catch-can".
Thus, common sense requires a certain amount of planning, checking and control.
This again imposes some force on people and does not always stimulate individual initiative and cooperation.
Negative reactions on the side of the citizen result, to a considerable degree, from the fact that inconveniences and limitations are caused by other human beings and that it is human beings as well who appear to him or her as the authorities of control, checking and judgment--and very often he or she finds him or herself exposed to a bureaucrat's mercy.
Considering these psychological implications, it is, therefore, suggested to make the citizen subjectively feel liberated.
A system which is conceived as arbitrary in one way or the other, should be replaced by a system which appears to be just, fair, lawful and independent from an individual's momentary judgment, a system, which further is self-regulating by feedback.
For the sake of simplicity, the portable transaction devices will be referred to as "cards" "M-cards" or "modules". M-cards, for the purpose of this application, are plastic devices, comprising integrated circuits, commonly called "smart cards" or "chip cards". Such smart cards or chip cards contain electronic components in microstructure, i.e., integrated circuits. Devices of this nature have been disclosed in German patent DE No. 19 45 777 C3 to DETHLOFF, filed on Sept. 10, 1969.